Performance of Chinese ADRs After Withdrawn Buyout Offers

Management buyout offers are made at a time chosen by insiders and when they may have valuable non-public information about a company's future potential.  Shareholders in companies with currently pending buyout offers (such as China Automotive Systems and China XD Plastics) should consider that some past offers that did not close were followed by significant … Continue reading Performance of Chinese ADRs After Withdrawn Buyout Offers

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China Automotive Systems Buyout Price Should be Raised to at least $7.50

China Automotive Systems, a major supplier of steering gear to the Chinese auto industry, received a buyout offer of $5.45/share from Chairman Hanlin Chen.  (LINK) The offer values the company at 7.8X reported 2016 earnings and just 0.6X 12/31 book value, multiples well below comparable companies trading in Hong Kong and China Increasing technological sophistication … Continue reading China Automotive Systems Buyout Price Should be Raised to at least $7.50

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (February Update)

Vehicle sales in China were 22.6% higher in February than one year ago. Winter economic activity and data are always distorted by the changing timing of the Lunar New Year which fell on February 8 in 2016 and January 28 in 2017.  Despite the uncertainty introduced by the holiday, two trends stood out: Passenger vehicle sales … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (February Update)

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (January Update)

Vehicle sales in China were 0.2% higher in January than one year ago.   Winter economic activity and data are always distorted by the changing timing of the Lunar New Year which fell on February 8 in 2016 and January 28 in 2017.  Despite the uncertainty introduced by the holiday, two trends stood out: Passenger vehicle … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (January Update)

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (December Update)

Vehicle sales in China were 9.5% higher in December than one year ago. December passenger vehicle sales were 9.1% higher than one year ago  with fading support from the purchase tax reduction that began in October 2015.  The tax rate on qualifying vehicles will rise from 5% in 2016 to 7.5% in 2017, still below the normal … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (December Update)

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (November Update)

Vehicle sales in China were 10.9% higher in November than one year ago. November Passenger vehicle sales were 10.5% higher than one year ago  with continued support from the purchase tax reduction that began last October and will continue until the end of this year.  There’s some speculation that the tax benefit will be extended to 2017. … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (November Update)

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (October Update)

Vehicle sales in China were 18.7% higher in October than one year ago. October Passenger vehicle sales were 20.3% higher than one year ago  with continued support from the purchase tax reduction that began last October and will continue until the end of this year.  There's some speculation that the tax benefit will be extended to … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (October Update)

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (September Update)

Vehicle sales in China were 26.6% higher in September than one year ago.   September Passenger vehicle sales were 28.9% higher than one year ago  with continued support from the purchase tax reduction that began last October and will continue until the end of this year.  Year-over-year comparisons may weaken in coming months. Commercial Vehicle sales … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (September Update)

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (August Update)

Vehicle sales in China were 26.6% higher in August than one year ago. August Passenger vehicle sales were 26.3% higher than one year ago  with continued support from the purchase tax reduction that began last October.  Year-over-year comparisons should remain strong in the third quarter and then weaken in the fourth quarter.  Commercial Vehicle sales … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (August Update)

Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (July Update)

Vehicle sales in China were 23.2% higher in July than one year ago. July Passenger vehicle sales were 26.3% higher than one year ago  with continued support from the purchase tax reduction that began last October.  Year-over-year comparisons should remain strong in the third quarter and then weaken in the fourth quarter.  Commercial Vehicle sales, … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (July Update)